‘Loan rates increase’ despite base rate cuts
The interest rates of personal loans have increased despite two base rate cuts by the Bank of England, new research has revealed.
A survey by MoneyExpert has revealed that the average rate of an unsecured personal loan is 11.4 per cent, although at the beginning of the year this figure was at 10.62 per cent.
Sean Gardener of the firm stated that this could impact upon debt-burdened consumers.
"Over 180,000 people consolidate their debts every month and the vast majority turn to an unsecured personal loan to help them control their finances," he said.
However, he added that lenders are wary of borrowers who may not be able to make the repayments and thus credit has become harder to obtain.
The Bank of England's monetary policy committee reduced the base rate by 0.25 per cent in February and December, taking it to 5.25 per cent.
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